Glencore shares dip as it lifts its full-year guidance on its trading unit while copper production slips

 
Courtney Goldsmith
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The global miner increased guidance for its marketing arm (Source: Getty)

Glencore reported copper production fell in the first quarter of 2017, but it raised its earnings guidance for its trading division.

Flooding in Peru, rain in the Democratic Republic of Congo and damage caused by Cyclone Debbie caused Glencore's results to finish behind analyst expectations.

Copper production was down three per cent to 324,000 tonnes due to lower grade quality as well as wet weather and flooding.

Read more: Glencore is making a move on Mexico's fuel-stations business

Meanwhile, the FTSE 100 miner raised its full-year guidance on its marketing business' earnings before interest and tax (Ebit) to between $2.3bn to $2.6bn from $2.2bn to $2.5bn.

Tyler Broda, analyst at RBC Capital Markets expects the figure to move even higher: "We continue to expect that with the Rosneft deal, continued volatility in commodity markets, tightening zinc markets, and the ability for Glencore to augment its capital utilised, we forecast higher than guided levels at $3.1bn."

Glencore did not give an update on its marketing business, which ships millions of tonnes of metals, oil and other commodities around the world.

The firm's share price had fallen 1.29 per cent to 283.10p at the time of publishing.

Read more: Rebounding commodity prices help Glencore complete its turnaround

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